Palestine—Palestinian Enterprise Development (PED)

The Palestine Enterprise Development project represented a critical phase of the U.S. Agency for International Development (USAID)’s investment to support a viable market economy in Palestine. The project came at a sensitive time in the peace process, when USAID’s continuing leadership within the donor and Palestinian communities was required to catalyze positive change in a difficult environment. PED focused on strengthening democratic and market economy institutions, thereby maintaining positive momentum in the private sector and in key economic ministries, so that the Palestinian economy can compete in the global market. After the installation of a Hamas-led government in March 2006, the scope of the project was modified to provide a flexible humanitarian mechanism capable of fulfilling critical consumption needs and sustaining employment in the private sector.

Sample Activities

• Improve the business operating environment with business support services such as financial management, marketing, production, overhead control, and legal.
• Provide limited technical assistance and small grants to business institutions and associations that deliver services to small and medium-sized enterprises.
• Facilitate access to finance (microfinance and bank finance).
• Establish apprenticeship program.
• Develop reform measures related to legal and institutional reform, industry structure and ownership, and tariff and regulatory structure to help the Palestinian Authority achieve management efficiencies in the energy sector.
• Design and manage a PED grant fund.
• Compile data on industries and firms throughout the West Bank and Gaza to provide USAID with real-time information on the state of the private sector.

Select Results

• Created or maintained 7,000 jobs, and facilitated $26.2 million in investment and financing and $6 million in business development services.
• Assisted 43 firms in adopting quality standards.
• Facilitated $11.1 million in exports for assisted businesses.
• Implemented a $3.5 million grant fund to support PED objectives.